WAEC Accounting 2015 Paper

Concept:Advertising owing is the unpaid advertising expense for the period after the paid coverage has ended.Explanation:The advertising paid was $\text{GH¢}\,36,000$ for 12 months.So monthly advertising expense is $\frac{36,000}{12} = \text{GH¢}\,3,000$.This paid amount covers advertising up to March 31, 2012.For the year ended June 30, 2012, the months not yet covered are April, May and June: 3 months.Therefore, advertising owing for the year is $3 \times 3,000 = \text{GH¢}\,9,000$.Answer:$\text{GH¢}\,9,000$ (Option B).